XRP Faces 50% Volume Drop, Whales Sell $838M, Price May Retest $1.60

XRP, the cryptocurrency associated with Ripple, is currently facing significant bearish pressure. Key market indicators suggest a potential downturn, with the price potentially retesting the $1.60 range. This bearish outlook is driven by increased selling activity, particularly from large holders, or whales, who are offloading their positions.

One of the primary indicators of this bearish trend is the decline in XRP’s cumulative volume delta (CVD). Throughout March, the spot CVD fell by 50%, indicating a drop in buying interest. Additionally, the perpetual CVD dropped to -1.18 billion on March 11, suggesting that traders are increasingly opening short positions, which is often a precursor to further price declines.

Whale activity has been particularly noteworthy. Data shows that whale outflows, tracked as a 30-day moving average, have escalated. Between March 4 and March 10, whales liquidated around $838 million in XRP, amplifying the bearish narrative and suggesting a sustained sell-off. This distribution phase, where major investors gradually liquidate their positions to realize profits, is a significant factor in the current market dynamics.

Technical analysis also supports the bearish outlook. Recent analysis of XRP’s 1-day chart reveals a head-and-shoulders (H&S) pattern, which is a significant technical formation. The completion of this pattern occurred when the asset closed below $2.05, identified as the critical neckline. This indicates possible strong bearish repercussions, particularly as it unfolds in higher time frames. If XRP cannot reclaim the $2.05 level as a support base, it is likely to target lower price ranges, aligning closely with the 0.5 and 0.618 Fibonacci retracement lines, often referred to as the “golden zone,” with the retest range estimated to be between $1.90 and $1.60. Given the current analysis, the likelihood of testing the $1.60 support level is significantly high, and failure to maintain this range could trigger further declines toward a long-term demand zone between $1.58 and $1.27.

In conclusion, XRP’s market dynamics reflect a challenging landscape marked by selling pressure from whales and bearish sentiment in trading futures. With key price indicators pointing toward a potential retest of the $